Sometimes when the numbers don’t add up in a company’s accounting, it’s due to an error in the process: the data input, the formulas used, or other flaws in the methods and systems. But, sometimes the accounting information shown to others – whether that be customers, investors, or government regulators – is reached fraudulently to profit insiders at the expense of others.
When you notice that your employer’s accounting is off, and that there seems to be an underlying illegal purpose to defraud others, you may be able to provide this information of illegal conduct to government regulators via a confidential whistleblower action brought by an attorney.
There is a justice and fairness aspect to taking such action, in that it can help protect investors, taxpayers, and fair players in the marketplace, but there is also sometimes significant financial reward for the whistleblower personally. In fact, many whistleblowers earn millions of dollars apiece each year in this country through bringing either a False Claims Act (FCA) action or an SEC or IRS whistleblower action.
Winning a False Claims Act (FCA) Action Award
With an FCA claim, you can anonymously bring forward information of accounting fraud by which the federal government is being defrauded, either in the form of paying too much for goods or services (procurement fraud, which is often seen in the context of military and defense spending) or in reimbursing private companies for inflated costs of goods or services, as is often seen with Medicare or Medicaid fraud.
If your FCA claim is successful, you can win between 15% and 25% of the total amount that the federal government recovers in seeking ill-gotten profits and imposing penalties.
Winning an SEC Whistleblower Reward
Oftentimes, accounting fraud is used as a way to make a company’s profits appear larger than they are in order to bring in new investors and create an illusory sense of growth and power in the marketplace. It may also be used to siphon money out of the company at the expense of investors.
Obviously, these and other actions are violations of federal securities laws for those companies governed by such laws. As with an FCA claim, if you are able to provide original information to the SEC which leads to a successful SEC enforcement case, you are eligible to win 15% to 25% of the recovery as a personal reward.
Winning an IRS Whistleblower Reward
Similarly, accounting fraud can be used to hide profits and thus limit a company’s tax exposure. This can clearly be achieved in a myriad of ways including hiding cash, inflating expenses, misclassifying income and expenses, and any other sort of illegal tax strategies.
If you provide original information to the IRS of accounting fraud leading to tax crimes, you can again be eligible to receive between 15% and 25% of the funds recovered by the IRS as your personal reward.
Reach Out to an Experienced Whistleblower Attorney Today
At Kreindler & Associates, our experienced whistleblower attorneys will work with you every step of the way to determine your appropriate course of action, protect you from retaliation, and collect your much-deserved reward. All of our consultations are 100% confidential. Contact us today for an evaluation of your allegations and potential outcomes.
